Ex-Pharmakon CEO Convicted on FDA Fraud, Adulteration
Former Pharmakon Pharmaceuticals CEO Paul J. Elmer has been convicted of conspiracy to defraud FDA and nine counts of adulterating drugs at the company’s Noblesville, IN drug compounding facility. The government charged that from 2013 to 2016, Elmer and Caprice R. Bearden, Pharmakon’s former compliance director, caused Pharmakon to distribute about 70 lots of over- and under-potent drugs to military and civilian hospitals throughout the country, according to the Department of Justice (DoJ). Bearden pleaded guilty to all the charges in the original indictment on 11/21/2017. Her sentencing date has not been scheduled.
According to the government, Pharmakon routinely shipped compounded drugs at Elmer’s direction to customers without obtaining laboratory test results that verified the drugs were the strength they were supposed to be. “Furthermore, evidence showed that, despite receiving test results showing potency failures, Elmer did not recall the drugs, notify the customer, notify the FDA of the potency failures, or conduct any root cause investigation to determine the cause of the failure,” DoJ says.
Elmer faces up to five years in prison and a fine of up to $250,000 for defrauding FDA. He also could get an additional year in prison and a $100,000 fine for each adulteration charge. Elmer’s sentencing date has also not been scheduled.